Do you know the consequences of business succession?
Posted: Mon Dec 23, 2024 9:40 am
Business succession is a common occurrence nowadays, largely due to the economic problems faced by many companies in our country. When a business is having trouble moving forward, one possible solution is to try to find an investor who is interested in refloating it and moving forward.
In order to legally understand that there is a succession of companies, certain aspects must be analyzed: the existence of a similar activity in both, the transfer of assets from one to phone number in canada the other (transfer of productive units, not of elements individually), the hiring of all or part of the staff of the previous company. If it is a partnership, it is also decisive that one of the partners becomes part of the new entity.
Consequences of succession for the company
Business succession has consequences for both the company and its employees. The new company is responsible for the debts and labour obligations incurred by the previous company: salaries, social security contributions, compensation, etc. The transferor and the transferee will be jointly and severally liable for three years for labour obligations arising prior to the transfer that have not been met. This liability does not need to be declared judicially; the administration itself can determine that there is a succession and take action to collect payments against either party.
The Tax Agency can also claim outstanding debts and even commercial creditors. It is very common, in the event of bankruptcy.
In order to legally understand that there is a succession of companies, certain aspects must be analyzed: the existence of a similar activity in both, the transfer of assets from one to phone number in canada the other (transfer of productive units, not of elements individually), the hiring of all or part of the staff of the previous company. If it is a partnership, it is also decisive that one of the partners becomes part of the new entity.
Consequences of succession for the company
Business succession has consequences for both the company and its employees. The new company is responsible for the debts and labour obligations incurred by the previous company: salaries, social security contributions, compensation, etc. The transferor and the transferee will be jointly and severally liable for three years for labour obligations arising prior to the transfer that have not been met. This liability does not need to be declared judicially; the administration itself can determine that there is a succession and take action to collect payments against either party.
The Tax Agency can also claim outstanding debts and even commercial creditors. It is very common, in the event of bankruptcy.